Mumbai-based pharmaceutical company Elder PharmaceuticalsBSE -0.57 % has been put on the block as it grapples with mounting debts and rising competition in the pharmaceutical industry.
The company, founded in 1989 by first generation entrepreneur Jagdish Saxena, has mandated multinational consultancy firm Ernst & Young (E&Y) and Japanese investment banking firm Nomura Securities to manage a formal process to find a buyer through a negotiated transaction.
The company's advisors are currently doing a vendor due-diligence at the corporate office in Mumbai to review the business ahead of offering assets to a potential buyer, said two people close to the transaction. Vendor due-diligence is a process commissioned at the start of the disposal process and undertaken by the company to review and understand the real value of assets that are being sold. It is completed by a final verification from an external independent lawyer or auditor.